In view of the cost and potential impact of guidance counselors, the New York State Office of Education Performance Review undertook this study to determine the actual role and function of guidance personnel, and the effectiveness of the counseling services they provide. The examination was based on the perceptions of counselors, parents, students, and others as measured through interviews and questionnaires. The overall finding was that guidance counseling, as currently performed, is substantially ineffective. Specific findings included the fact that two out of every five parents surveyed felt that guidance counselors had little effect on their children's development. Counselors did not appear to exercise a marked influence on student decisions with respect to choice of occupation or postsecondary education. The range of functions normally assigned to guidance departments was found to dilute the resources available for counseling and was wasteful of professional skills. The role and functions of guidance counselors were not clear, and nearly one of four counselors surveyed was unsure as to whether or not counselors themselves understood their roles. Specific recommendations are offered to district and state level boards and departments in an effort to re-establish the importance of guidance counseling services to education. (Author/PC)